Shreedhar Spinners Ltd IPO
Textiles
Price Band
₹51 – ₹53
Lot Size
2000
Minimum Bid Quantity
4000
Minimum Investment
₹212000
Issue Size
₹30.68Cr
Opens
2026-06-23
Closes
2026-06-25
Listing
01-07-2026
Subscription Status
Qualified Institutional Buyers
2.51 x
Non-Institutional Investor
10.15 x
Retail Individual Investor
5.45 x
Total
6.04 x
IPO Details
Issue Type
EQUITY
Face Value
₹10
Tick Size
1
ISIN
INE0K3301012
Pre-Apply Available
No
Daily Bidding Time
10:00:00 - 17:00:00
About the Company
Shreedhar Spinners Limited is a manufacturer of compact spun cotton yarn in counts ranging from Ne 10s to Ne 40s. The company operates a manufacturing facility located in the Additional Amravati Industrial Area Textile Park, Maharashtra, spread over about 120,000 square metres under a long-term lease arrangement. As of March 31, 2026, the facility had an installed capacity of 10,000 MT per annum, supported by 28,608 spindles, and operates round the clock for around 360 days a year. The company follows a business-to-business (B2B) model and supplies cotton yarn to textile manufacturers, exporters, traders, and fabric processors, primarily in Maharashtra. Its yarn is used in knitting and weaving applications across segments such as apparel, denim, bed linen, terry towels, socks, furnishing fabrics, and industrial textiles. Shreedhar Spinners has obtained ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications and maintains an in-house quality control team equipped with manual, semi-automatic, and automatic testing systems. The company sources cotton bales from local ginners, traders, and the Cotton Corporation of India and benefits from its location in the cotton-rich Vidarbha region. It is promoted by Dharmendra Mohandas Goyal and Vishal Agarwal, who together have over five decades of experience in the textile industry.
Pros
- • The company claims to have developed long-standing relationships with customers through its focus on product quality and customised solutions. It states that it served 42 customers in FY26, 36 in FY25, and 33 in FY24 across more than seven states and Union Territories. The company reports that repeat customers accounted for 72.50% of revenue in FY26, 73.49% in FY25, and 95.11% in FY24, with around 8 customers having been associated with the company for more than 3 years.
- • The company claims to operate a fully integrated spinning facility with an annual production capacity of 10,000 MT supported by 28,608 spindles as of March 31, 2026. It states that the use of compact ring spinning technology and advanced machinery sourced from India, Italy and Switzerland enables the production of high-quality yarn with improved strength and uniformity. The company further declares that its integrated operations support product customisation and enhance production efficiency.
- • The company claims to be led by promoters with over 50 years of combined experience in the textile industry. It states that its operations are supported by a workforce of 164 employees as of April 30, 2026, including experienced technical and quality personnel. The company declares that the management team's industry expertise and focus on modernisation have contributed to operational stability and business growth.
Cons
- • As of the date of the red herring prospectus, 76.50 lakh equity shares representing 48.88% of the pre-issue equity share capital held by promoter Shreedhar Cotsyn Private Limited are pledged in favour of SBICAP Trustee Company Limited. Any invocation of the pledge due to a default under the financing arrangements could result in dilution of promoter holding, a change in control, and may adversely affect investor sentiment, the market price of the shares, and the company's business prospects.
- • The company had total outstanding borrowings of Rs 116.38 crore as on April 30, 2026. Its debt-to-equity ratio was high at 3.89 in FY26, 3.21 in FY25, and 3.67 in FY24. The financing arrangements impose several restrictive covenants relating to expansion, borrowings, capital structure, and management decisions. Any inability to comply with these obligations or service debt could adversely affect the company's financial condition and operational flexibility.
- • The company has entered into related party transactions in the ordinary course of business and may continue to do so in the future. Sales to related parties amounted to Rs 12.66 crore (8.64% of revenue) in FY26, Rs 25.01 crore (18.61%) in FY25, and Rs 55.19 crore (43.68%) in FY24. The high contribution from related party transactions in previous years exposes the company to concentration and governance risks, and there can be no assurance that similar transactions with unrelated parties would have been undertaken on comparable terms.
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